Workers' Compensation Insurance for California Businesses
Workers' compensation insurance provides medical care, disability, and wage-replacement benefits to employees injured on the job, and protects California employers from most injury-related lawsuits. Most employers with one or more employees are required to carry it.
Key Takeaways
- Required for most California employers with one or more employees.
- Premium is driven by payroll, class code, and the experience modification.
- Covers medical, disability, and wage benefits regardless of fault.
- A broker can access multiple carriers, including for hard-to-place accounts.
What Is Workers' Compensation Insurance?
Workers' compensation is a no-fault insurance system. In exchange for providing benefits to injured workers, employers are generally protected from personal-injury lawsuits by employees. In California, it is regulated by the Division of Workers' Compensation and the Department of Insurance.
Who Needs It in California?
Most employers with one or more employees must carry coverage, including part-time and seasonal workers. Licensed contractors must carry it or file a valid exemption with the Contractors State License Board.
How Is Premium Calculated?
Premium is primarily payroll per $100 multiplied by the class-code rate, then adjusted by the experience modification and other underwriting factors. Accurate payroll and classification are the foundation of correct pricing.
How to Get Coverage
Gather your operations, payroll by class code, employee count, loss runs, current carrier and premium, experience mod, and renewal date. A broker submits this to multiple carriers to compare options.
Frequently Asked Questions
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